Haggling a new home's price?

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karlod

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Hi

In buying a new property, does the buyer have any bargaining power? I ask because I put a deposit down on an apartment in May 06 and am still waiting to move in. I am concerned that the property is not going to be worth the value I signed for over 18 months ago (this is based on prices around the area). I will be getting it valued and do think the price will come in below the signing price.
The contract gives an 18 month completion clause, allowing me to pull out after this time frame. This has now expired. I have mortgage approval so am ready to go. Can I turn around and say ill offer the developer 290K (of a 320K signing price).
Has anybody had any experience “haggling” with a developer? I don’t want to buy a place with negative equity but also I do want to move into this place.
My solicitor is looking into this, im just wondering what some of you think.

Thanks
Karl
 
If you're prepared to walk away then most definitely haggle. Would be very surprised if you didn't get something extra as long as you haven't already signed documents agreeing the price.
 
A friend of mine did it. She approached the developer and told them that she liked the house but that she only had approval for 20,000.00 less than the sale price (chancing her arm she thought). Well the developer came back and said that she had a deal. Obviously with the way the market is now the developer didn't want to lose a sale (which was still at a very good price) as these new homes have been on sale for a few months and there was still a few left. Your developer may feel the same.......
 
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Well Well. Not sure what part of the country you are in but developers are under massive pressure from the Banks. If you really want and like the house offer 225 to go to 250. The Ball is firmly in your court.
 
Cheers guys.
I was thinking the same and have been looking around the area. The option of walking away is even more appealing that i thought. 3 bed houses going for 20K more that the 2 bed apt im looking at. So much more for so little extra. Im buying in Dublin, finglas area.
I think 225 would be just plain cheeky but maybe an offer of 270K or so might.
 
karlod if you can walk away from a 2 bed apartment and get a 3 bed house I think you should. Right now a 2 bed meets your needs looking to the future a 3 bed house could be the way to go. Good luck with it
 
You need to check with your solicitor that you can walk away before you do anything. Builders contracts seem to be very watertight.
 
Bronte is correct. You need to get your solicitor on the job immediately and have a cheque returned to YOU on an ASAP basis. Developers are up to their ears at the moment. I am in the middle of buying a new apartment at moment from asking 600k to offering 450k (25% off the asking price). Has yet to agree but said he will take 500. And I will wait. The same manner in the booming market where developers told anyone making an offer to P off, you can now do the same. It is a Buyer's market and coming up to Xmas they need sales, Go for it and the best of luck.
 
pc7 said:
karlod if you can walk away from a 2 bed apartment and get a 3 bed house I think you should. Right now a 2 bed meets your needs looking to the future a 3 bed house could be the way to go. Good luck with it
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I know. Im buying with a mate and the 3 bed would give more room. Never considered this as an option but it is something that is worth looking at.


You need to check with your solicitor that you can walk away before you do anything. Builders contracts seem to be very watertight.
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Im have him looking into this but i think its ok.

Mercman, like that story, will defo be going to the developer now. When you picked the figure of 75%, what was it based on? Did you ever expect him to take it? I was buying for 320K in may last year, would an offer of 250K be seen as taking the p1ss?
 
No, I am not taking the ****. Believe me if the market was rising and the 18 month period was over the developer would be telling you 'more money please' or else no deal. I'm buying from the developer - from his 600k prices which he has already dealt at for other properties. The market is dead. Public sentiment has gone. Ask your mortgage broker or Bank if you don't believe me. If you can get out of the original contract tell him that your mortgage off has been lowered in amount and all you can offer 240k. If he says no either walk away or if you are hellbent tell him you may be able to get a loan of 10k.
 
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